Customer Service Key to Sales

Not everyone is cut out to be a dynamite salesperson. And many think a dip in the economy will be the litmus test between pros and amateurs.

At the height of the housing boom, many lenders and salespeople in various industries were so swamped they essentially stopped being salespeople and became order takers, said Daren Howard.

Howard is the managing partner with Howard Mohorn & Associates LLC, which operates the Memphis, Little Rock and Springdale franchises of Dale Carnegie Training.

Many of these people likely had good sales habits before the boom, “but now the phone’s not ringing,” Howard said. “And they’re scratching their heads going, ‘what do I do?'”

Several salespeople in Northwest Arkansas said high-touch customer service and the fundamental principles of selling are important whether the economy is booming or not. And there are few simple techniques that might just tip the scales when it comes closing a sale in a down market.

How much of an effect a recession would have is up for debate, however, and sometimes, even people in the same industries have differing perceptions.

“There has definitely been a slowdown, and everyone’s noticed it,” said Kelli Gemmell, a consultant and interior designer with Innerplan, a Little Rock-based office furniture supplier with a Fayetteville satellite office.

Todd Moser, president of Moser Corp., an office supplier based in Bentonville, had a different take.

“My perception of the slowdown is that there isn’t a slowdown,” Moser said. “The national media is taking one small segment, which is housing, and are applying it to the economy as a whole.”

Basic Training

No matter how the economy is doing, some good basic sales principles apply, Howard said.

A common mistake salespeople make is failing to speak with the appropriate person in an organization.

“First of all, we don’t necessarily get to the right person. We spin our wheels dealing with people who are not decision makers, because it makes you feel good to make contact with someone,” he said.

But if that person doesn’t have the authority to make purchases, the whole endeavor can be a waste of time. That’s why it’s vital to make sure to meet with a decision maker, he said.

That’s not to say that there aren’t benefits from speaking to those who are further down the ladder. When Howard first moved to Memphis, he didn’t have a lot of contacts.

“So everybody I met, I said, ‘Can I buy you a cup of coffee or some lunch and pick your brain to get some guidance?'”

This tactic gets the person’s guard down, because they know they aren’t being sold to. It also serves the purpose of determining if that person is a decision maker, and if they’re not, can create a referral.

“That’s a much easier way to get into doors than cold calling,” he said.

One key thing to focus on regardless of whether one is selling a service or a product, and especially in a tough economy, is to sell oneself as much as the product, Howard said.

Many sellers will tout the advantages of their company’s product, citing distinctions that might seem negligible to customers who are concerned primarily with price.

“What do most salespeople say? ‘We’re the best in the world, and here’s why we’re great’,” Howard said.

“Well, consumers get conditioned to this and they get skeptical.”

Taking the approach of underselling the product – saying that it might or might not be a good fit – and downplaying expectations can make the potential customer feel that he is in the driver’s seat.

“We are a nation that loves to buy, but we hate to be sold,” Howard said.

Another selling technique that applies to lean times is what Howard called a “reversal.”

This involves turning reasons not to make a purchase – “money’s tight,” “budgets are down,” – into reasons to make a buy – “there’s no more important time to make an investment than right now,” “this purchase will keep morale up,” “prices are lower than they’ve been in years.”

Valued Customers

Maintaining good relationships with customers in good times or bad is one way Gemmell makes sure to stay ahead.

“One hundred percent all of our sales are to other businesses, architecture firms or the University of Arkansas,” she said.

Gemmell not only sells the products, but also designs office layouts. Though many of her clients have been scaling back on new projects, it’s always important to make sure those customers know that the value of what they’re getting is more than just the product itself, she said.

Moser Corp. also offers office design and layout in addition to the products it sells. The company hasn’t noticed too much of a slowdown.

“We’re staying nice and steady,” Moser said.

He acknowledged that the housing slowdown has been a bit of a problem, but said he’s seen an increase in small business sales.

“One reason we can keep up is that we’re expanding our marketing and advertising, and are trying to make ourselves as efficient as possible,” he said.

Another way Moser is growing is by offering a wider variety of products at more competitive prices. In 2002, the company carried 40 different lines of product. Now that figure is close to 500.

“We are trying to gain more market share by doing more things for more people,” Moser said. “Every customer large and small is important.”

The vendors serving Wal-Mart Stores Inc. have been very reliable customers for Moser Corp.

“[Members of the] vendor community are very loyal, great customers,” Moser said.

Marginal Expenses

Big-ticket items are often the first to get axed from budgets during an economic slowdown. Business owners are also more likely to hold on to the ones they have for longer.

This applies to company fleets, especially heavy trucks used in the construction industry.

“We’ve seen some slowdown because a lot of the people we sold to were in construction,” said O.C. Newton, commercial and fleet sales manager for Chevrolet/Hummer of Fayetteville.

“The small-fleet companies are holding on to vehicles longer and getting more miles out of them,” he said.

Newton said 2007 sales were down about 25 percent from 2006. But this drop is likely more of a return to normal from the prosperity of 2005 and 2006.

Still, the result is that fewer vehicles are being sold. Profit margins are down, so there is a lot more competition for the vehicles that are being sold.

“You have to turn over more rocks to find your customers,” he said.

Nonetheless, Newton expects this year his team will keep up with, and likely top, sales figures from last year.

“It helps to be optimistic now,” he said.

Fleet vehicle sales are different than retail sales.

“People pretty much buy on the fact that they’ve done business with you in past and trust you to give them the best price,” Newton said.

“A lot of times, doing the business that we do, you get one chance to make the sale,” he said. “We don’t do the back-and-forth like a lot of retail sales. We have a price in mind we need to sell the vehicle at – and that’s it.”

Another area where some businesses will cut back in a down economy is advertising budgets.

“Cutting back on advertising is a dangerous thing to do,” said Mike Vaughn, general manager and vice president of KNWA-TV, Channel 51.

While the station has seen a slight decline in advertising from builders and related businesses, ad sales are good overall.

“Seasoned veterans know that these times come and go,” he said. “When times are bad, you can’t stop inviting people to come buy from you.”

KNWA is watching expenses closely at present. “But we’re not taking drastic measures, other than being good stewards of our company’s money,” he said.